My target price for MEL is Rs. 7.50 – Rs. 8.00 within one month, on or before 10th June 2015 and to reach all time high for long term investment.
I think it is worth buying MEL at current pricing levels (Between Rs. 6.20 to Rs. 6.50) for an investment due to following reasons;
· - Net Asset Value per share – Rs. 7.25 as at 31 December 2014
· - Director purchased 54,988 shares between 6.30-6.50 during 17 to 19 March 2015
· - All time low – Rs. 5.80
· - All time high – Rs. 16.30
· - IPO Price – Rs. 14.00
· - Currently trading at Rs. 6.20
· - Dividend per share – Rs. 0.10 (Expected within 03 months)
· - Top 20 share holding - 95.93%
· - Company is managing funds effectively for new developments without going for right issues
· - Future potential in the renewable energy segment in the country and therefore specially in the Hydro / wind and Solar power segments, MEL can perform better in coming years
Please note that I have observed artificial downward pressure in the share price and collection at the same time between Rs. 6.50 to Rs. 6.20.
MEL is a risk free investment and value for money at current prices.